Alabama town named one of America’s best places to buy a beach house
Summer is almost here, but vacationers are already flocking to the beach after more than a year of coronavirus lockdowns and travel restrictions. And it could be a great time to shop on the Alabama coast, especially on Dauphin Island.
Vacasa, one of the largest vacation property management companies in North America, has ranked Dauphin Island as one of the best places in the United States to buy a beach house this year. In a recent report, the small offshore town of Mobile County ranked No. 3 in the country and was one of only two Gulf Coast cities to make the top 10.
[Can’t see the list? Click here.]
Dauphin Island was not only highly rated because of its unique landscape and beautiful beaches. It scored well because the homes out there have the potential to generate a great return on your investment. The average cap rate, or cap rate, at Dauphin Island was 7.8%, according to Vacasa. It is tied for second among the top 10 coastal cities.
The cap rate is a value that indicates the rate of return on a real estate investment. The higher the cap rate, the better the return.
But that’s not all Dauphin Island has to offer. Real estate is also quite cheap there. People looking to buy a rental property or vacation home can enter Dauphin Island for a median price of around $ 290,000, the second most affordable price among the cities featured in the report. And Vacasa estimates that the average rental of a beach house will net the owner about $ 43,000 per year.
A handful of other southern beaches made the list, though none in Florida made it into the top ten. It was one of two North Carolina cities on the list – Corolla, North Carolina, was ranked fifth.
Isle of Palms, South Carolina, was ranked No. 7, and the Bolivar Peninsula, Texas, near Houston, was No. 10. The Bolivar Peninsula was the only city in the Gulf of Mexico other than Dauphin Island in be on the list.